Strong domestic demand for galvanized steel boosted the third-quarter results of Nexa Resources, the Brazilian base metals producer said.
There is enough domestic demand for zinc to keep Nexa's smelters running at full capacity, Nexa Resources chief executive officer Tito Martins said during an earnings call on Friday October 30."If I had more metal today, I would be selling more," Martins told Fastmarkets, adding that Nexa's Juiz de Fora smelter had cut production by 50% in May-June, but all smelters were back to full capacity by July.Martins cited the strong recovery in Brazil's construction industry as a reason for the uptick in zinc demand, with more than 50% of Nexa's sales going to Latin American countries."I had a friend in the construction industry who called me to say he cannot find galvanized steel in Brazil," Martins said. "Construction activity had stopped in the first half of year [and] began again the second half, and companies did not have reserve stocks."Martins said he expects the strong demand for zinc to...